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Canada's lululemon athletica expects to do post-holiday markdowns to get rid of remaining merchandise, after more than a year of inventory shortages amid fast-growing demand for its upscale yoga togs, the company said. "Last year we didn’t have any product to do the holiday sales. This year, we anticipate we’ll be in a more normal markdown post-holiday mode," said CEO Christine Day.

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Retailers used major markdowns and promotions to spur post-holiday sales, a boost that the National Retail Federation says helped overall November and December sales reach or exceed the predicted 3.9% year-over-year increase. "Holiday may have been a reflection of how the consumer is performing as we are getting into more of a speedier [economic] recovery," NRF Chief Economist Jack Kleinhenz said.

Vancouver-based Lululemon Athletica's sales and popularity exploded as the brand took pricey yoga togs mainstream, but analysts say the retailer may be poised for even bigger growth next year. Manufacturers will increase production for the growing retailer in 2013, a shift that will help the brand overcome inventory issues and keep up with demand.

Luxottica said Thursday it will acquire Brazilian eyewear maker Tecnol early next year for about 110 million euros, a deal that will allow the company to start manufacturing locally and avoid heavy import duties. Italy-based Luxottica expects to double its revenue in Latin America next year.

Retail chains including Gap, Nike and Nordstrom have taken notice of the success of Lululemon Athletica and are building their own brands of yoga togs and workout wear as part of a push to grab a bigger piece of the women's athletic apparel market. Sales in the segment rose 2.6% last year, even as consumers tightened their belts in other areas.

Canada's Lululemon Athletica has already garnered a legion of US fans for its high-end yoga togs, and the chain sees more room for expansion. The company, which increased same-store sales 31% while competitors scrambled to stay afloat during the downturn, connects with yoga instructors and fitness professionals who drive brand awareness through word-of-mouth, an approach that works with wealthier customers willing to spend $100 on yoga pants.